Telling HMRC
When someone dies, you should tell HMRC as soon as possible. You can do this through the Tell Us Once service (offered by most local councils at the time of registering the death), which notifies HMRC and other government departments at the same time.[3]
The Final Tax Return
If the deceased was registered for Self Assessment, a final tax return is needed for the period from 6 April to the date of death. The personal representative (executor or administrator) is responsible for filing this.[2]
The normal filing deadlines apply (31 January following the end of the tax year). The personal representative can file the return online using HMRC-recognised software.
Income Tax After Death
The deceased’s income up to the date of death is taxed in the normal way, using the full Personal Allowance for the year. Any income the estate earns after death (interest, rent, etc.) is taxed as estate income.[2]
Inheritance Tax
The estate may be liable to Inheritance Tax if its value exceeds the nil-rate band:[4]
| Threshold | Amount |
|---|---|
| Standard nil-rate band | £325,000 |
| Residence nil-rate band (if leaving home to direct descendants) | £175,000 |
| Combined maximum (individual) | £500,000 |
| Married couple (with transferable bands) | £1,000,000 |
IHT is charged at 40% on the estate above the threshold. Assets left to a spouse or civil partner are exempt.
Bereavement Support Payment
If your spouse or civil partner has died, you may be entitled to Bereavement Support Payment. This is tax-free and consists of an initial lump sum plus monthly payments for up to 18 months.[5]
Claiming Back Overpaid Tax
If the deceased overpaid tax (e.g. through PAYE), the personal representative can claim a refund from HMRC on behalf of the estate.[2]
Frequently Asked Questions
How do I tell HMRC when someone dies?
You can notify HMRC through the Tell Us Once service, which is offered by most local councils when you register the death. This notifies HMRC and other government departments at the same time.
Is a final tax return needed when someone dies?
If the deceased was registered for Self Assessment, a final tax return is required for the period from 6 April to the date of death. The personal representative (executor or administrator) is responsible for filing it by the normal deadline.
What is the Inheritance Tax threshold in the UK?
The standard nil-rate band is £325,000. An additional residence nil-rate band of £175,000 applies if the home is left to direct descendants, giving a combined maximum of £500,000 per individual or up to £1,000,000 for a married couple.
Is Bereavement Support Payment taxable?
No. Bereavement Support Payment is completely tax-free. It consists of an initial lump sum plus monthly payments for up to 18 months for those whose spouse or civil partner has died.
Further Reading
- CGT When You Sell Property
- Marriage, Civil Partnerships & Tax
- Filing Your Tax Return
- Contacting HMRC
Looking for simple Income Tax MTD software?
#GoFile is HMRC-recognised and trusted by 50,000+ UK businesses. Set up in minutes, file with confidence.
Get Started For FreeNo credit card required · Cancel anytime
Sources
- What to do when someone dies — GOV.UK
- Dealing with the estate of someone who's died — GOV.UK
- Tell HMRC about a death — GOV.UK
- Inheritance Tax — GOV.UK
- Bereavement Support Payment — GOV.UK